Litecoin is often seen as a leading indicator in the cryptocurrency market, with the saying that it usually kicks off the party when it starts to rise.
This means that when Litecoin goes up, Bitcoin and altcoins often follow suit.
Increased whale activity on the Litecoin blockchain
Santiment just shared a quite big rise in whale activity on the Litecoin blockchain since the last week of August.
Spikes in whale activity aren’t uncommon for Litecoin, but this latest increase is particularly interesting because it comes during a time when whale trading across the broader crypto market has been relatively quiet.
Santiment highlights a visible increase in daily whale transactions, defined as those valued at over $100,000.
In the last week of August, around 800 of these transactions were recorded. By September 7, that number had jumped to about 1,100, reflecting a rise of over 25% in just one week.
This surge in whale transactions is part of a larger trend of growing interest in Litecoin.
Along with the increase in high-value transactions, there has been a rise in attention for Litecoin on various social media platforms too.
Litecoin’s future
Data also shows a big increase in discussions about Litecoin, which climbed from under 0.3% at the end of August to approximately 2.922% by September 7, so it’s almost tenfolded.
This rise in social media activity is extremely important, whether or not someone is a fan of Litecoin.
The combination of increased whale activity and heightened social discussion suggests that Litecoin could be gaining attention from both major investors and the wider crypto community in the near future.
What does the Litecoin chart says?
Litecoin now is trading at $62, just above a critical price floor of $61. Prior to this decline, Litecoin had surged from $60 on August 28 to a 30-day high of $68.
This price pullback is significant, the ongoing momentum in social engagement may provide the support needed for Litecoin to initiate another rally.
Looking at the Litecoin/USD chart, the cryptocurrency is positioned at the 0.382 Fibonacci support level from the $68 peak.
If Litecoin breaks above the upper trendline, it could rise to the next short-term resistance level at $77.
On the other hand, if it falls below the lower trendline, Litecoin could drop to between $56 and $49.90. Despite the current fluctuations, the $61 price point remains a strong level to watch for traders.
